Alto Ingredients, Inc. · NASDAQ:ALTO
Alto Ingredients — Q1 2024 Earnings Presentation
21 slides from Alto Ingredients's earnings presentation, May 6, 2024
Slide 1: Alto Ingredients, Inc. Q1 2024 Investor Presentation
Alto Ingredients, Inc. Q1 2024 Investor Presentation May 6, 2024 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non- historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existi
Slide 3: Transforming corn into higher-margin specialty alcohol and essential ingredients
Transforming corn into higher-margin specialty alcohol and essential ingredients used in a wide range of consumer and commercial products 3
Slide 4: Producer and distributor of renewable fuel and essential ingredients
Producer and distributor of renewable fuel and essential ingredients and the largest producer of specialty alcohols in the U.S. Targeting Pursuing Optimizing Advancing Broadening higher-margin carbon capture & asset base traceability & customer markets with storage as part & executing sustainability
Slide 5: Targeting Higher-margin Markets
Targeting Higher-margin Markets Making everyday products better: Columbia Boardman, Oregon Pekin Campus • Health, Home & Beauty Headquarters Pekin, Illinois • Food & Beverage • Industry & Agriculture • Essential Ingredients • Renewable Fuels Engaging in decarbonization to support sustainability Magi
Slide 6: Producing Premium Products
Producing Premium Products Health, Home Food & Industry & Essential Renewable & Beauty Beverage Agriculture Ingredients Fuels API Grade Ethyl Grain Neutral Spirits Industrial Grade Ethyl Alto Yeast Transportation Fuel Alcohol Alcohol • Ethanol Vinegar Corn Meal USP Grade Ethyl Fertilizer Corn Oil Co
Slide 7: Pursuing Carbon Capture & Storage (CCS)
Pursuing Carbon Capture & Storage (CCS) • Signed letter of intent with Vault for safe and permanent CO2 storage deep underground in a secure geologic reservoir • Vault completed 2D seismic geological survey, began analysis and advanced the work required for the EPA Class VI permit application • ALTO
Slide 8: Sustainability Efforts
Sustainability Efforts Published Inaugural Sustainability Report in December 2023 Earned at Pekin campus • Safe Food/Safe Feed - a third-party product safety certification • 2 EcoVadis Silver Medals, 80th percentile among peers Completed materiality survey and initial roadmap • Strengthened environm
Slide 9: Investing in Premier Assets & Creating Differentiation, Increasing Efficiencies
Investing in Premier Assets & Creating Differentiation, Increasing Efficiencies Upgraded Installed Increased Increasing Corn Expanding Specialty Alcohol High-efficiency Corn Oil & Installing Alcohol Distillery Boiler Storage High Protein Distribution • 192 proof GNS & • Replaced two • Increased • Im
Slide 10: Certifications Create Differentiation
Certifications Create Differentiation Deepen Relationships and Open Doors to New Customers Specialty Alcohols & Essential Ingredients: More challenging to produce Required audits, process verification and document retention Create significant product performance impact for a small percentage of thei
Slide 11: Expanding Customer Base
Expanding Customer Base Customers prioritize Alto’s certifications, reliability, service and quality Sample list follows: Health, Home Food & Industry & Essential Renewable & Beauty Beverage Agriculture Ingredients Fuels 11
Slide 12: Improving Financials
Improving Financials Improving Performance Strong Liquidity • $0.8M improvement in gross loss YOY • $26M available under operating line of credit • $3.4M improvement in Adj. EBITDA YOY • $65M available under term loan, subject to certain conditions unaudited, $ in thousands Mar. 31, 2024 Dec. 31, 20
Slide 13: Capital Initiatives to Improve Adj. EBITDA
Capital Initiatives to Improve Adj. EBITDA Diversifying revenue, investing in assets and optimizing facilities In Operation Under Development For Future Evaluation • Primary Yeast • Biogas conversion • Corn Oil: 3 additional plants • Other CCS market Specialty Carbon Capture opportunities: Alcohol Q
Slide 14: Expanding Higher-margin Production and Improving Profitability
Expanding Higher-margin Production and Improving Profitability Targeting higher-margin markets with premium products Pursuing CCS as part of lowering carbon footprint Optimizing asset base & executing efficiency initiatives Advancing traceability & sustainability certifications & programs Broadening
Slide 15: Appendix
Appendix 15
Slide 16: Experienced Leadership Team
Experienced Leadership Team Bryon McGregor Todd Benton(1) Rob Olander, CPA Jim Sneed (1) Auste Graham President & CEO COO Chief Financial Officer Chief Commercial Officer General Counsel 16 years with Alto 25 years with Alto 17 years with Alto 32 years with Alto 2 years with Alto Brigham Young Unive
Slide 17: Senior Management with Deep Bench Strength
Senior Management with Deep Bench Strength Ed Baker Dan Croghan Michael Kramer VP, Human Resources VP, Eagle General Manager VP, Treasurer 16 years with Alto 2 years with Alto 17 years with Alto Prior Experience Prior Experience Prior Experience (1) Patrick McKenzie John Shriver (1) Stacy Swanson VP
Slide 18: Consolidated Statements of Operations
Consolidated Statements of Operations Three Months Ended March 31, unaudited, in thousands except per share data 2024 2023 Net sales $ 240,629 $ 313,891 Cost of goods sold 243,029 317,055 Gross loss (2,400) (3,164) Selling, general and administrative expenses (7,932) (7,882) Asset impairments — (574
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 19
Slide 20: Use of Non-GAAP Measures
Use of Non-GAAP Measures Management believes that certain financial measures not in accordance with generally accepted accounting principles (“GAAP”) are useful measures of operations. The company defines Adjusted EBITDA as unaudited consolidated net income (loss) before interest expense, interest i
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended March 31, (in thousands, unaudited) 2024 2023 Net loss $ (11,725) $ (13,166) Adjustments: Interest expense 1,634 1,565 Interest income (175) (221) Unrealized derivatives gains (3,190) (5,926) Acquisition-related expense 675 700 Asset impairments — 57